Agenda

Return

C.101

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	April 18, 2023

Contra

Costa

County

Subject:

Payment for Services Provided by Firm Revenue Cycle Management Services, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/18/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

Contact:	Patrick Godley, 925-957-5405
cc:	E Suisala M Wilhelm

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: April 18, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay up to $151,671 to Firm Revenue Cycle Management Services, Inc., a corporation, for the provision of billing services to process out-of-state Medicaid claims that exceeded the contract payment limit and was provided in good faith during the period November 1, 2022 through January 31, 2023.

FISCAL IMPACT:

This contractor is on a contingency fee contract, 100% revenue offset with additional collections. If approved, the retro payment in the amount of $151,670.61 will be funded 100% by Hospital Enterprise Fund I revenues.

BACKGROUND:

The Office of the Director/Finance has been contracting with Firm Revenue Cycle Management Services, Inc., since October 2014 for the provision of billing services to process out-of-state Medicaid claims.

BACKGROUND: (CONT'D)

On October 12, 2021, the County Administrator approved and the Purchasing Services Manager executed Contract #23-560-7 for the provision of billing services to process out-of-state Medicaid claims, in an amount not to exceed $150,000, for the period February 1, 2022 through January 31, 2023.

In March 2023, the Department became aware of invoices from the contractor exceeded the contract payment limit by $151,670.61 and the contractor has not been paid in full for additional services provided in good faith during the period November 1, 2022 through January 31, 2023.

Therefore, County staff has determined that Firm Revenue Cycle Management Services, Inc. is entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. The contractor has provided services at the request of County staff after the original contract payment limit had been reached. The Department cannot pay the contractor for services rendered that exceed the contract limits and for an expired contract. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $150,670.61 to Firm Revenue Cycle Management Services, Inc. for the additional services rendered in good faith.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, Firm Revenue Cycle Management Services, Inc. will not be paid for services rendered in good faith and provided to County clients outside of the contract payment limit.

CLERK'S ADDENDUM

Speaker: Caller 6770